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Notice Regarding Update to ERA FAQ 46

Summary

A U.S. Department of the Treasury notice dated March 5, 2024 announcing an update to FAQ 46 of the Emergency Rental Assistance (ERA) guidance for the ERA2 program established by section 3201 of the American Rescue Plan Act of 2021. The update lets grantees also use ERA2 award funds to acquire real property and for predevelopment activities for affordable rental housing projects serving very low-income families. Grantees must first have obligated at least 75 percent of their total ERA2 award for financial assistance, housing stability services and administrative costs, and acquisitions must comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA). Grantees must keep records for five years after the period of performance ends and report on property acquired or improved under 2 CFR 200.330.

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Congressional materials
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Ppr Int 281809D7333Eff62 Notice To Era2 Grantees C71908D8Fd
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Ppr Int 281809D7333Eff62 Notice To Era2 Grantees C71908D8Fd

Cite this document

“Notice Regarding Update to ERA FAQ 46.” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/ppr-int-281809d7333eff62-notice-to-era2-grantees-c71908d8fd/, SHA-256 8cfb253ee5e64e3d8642d7ba7eda8fd01d5cc9a66e9e66533e1401015a86e9f6.

Full text

                              U.S. Department of the Treasury
                           Emergency Rental Assistance (ERA2)
                         Under the American Rescue Plan Act of 2021
                          Notice Regarding Update to ERA FAQ 46
                                      March 5, 2024


Today, the U.S. Department of the Treasury (Treasury) is announcing updates to the ERA FAQs,
which provide guidance regarding the ERA1 program established by section 501 of the
Consolidated Appropriations Act, 2021, Pub. L. No. 116-260 (Dec. 27, 2020) and the ERA2
program established by section 3201 of the American Rescue Plan Act of 2021, Pub. L. No. 117-
2 (March 11, 2021).
Specifically, Treasury has updated FAQ 46 to clarify the use of ERA2 funds for affordable rental
housing, eviction prevention, and housing stability purposes. This updated guidance specifies
that, in addition to the existing affordable rental housing purposes outlined in the FAQ, grantees
may also use ERA2 award funds for:
   •   the acquisition of real property for the purpose of constructing, rehabilitating, or
       preserving affordable rental housing projects serving very low-income families; and
   •   predevelopment activities that enable the construction, rehabilitation, or preservation of
       affordable rental housing projects serving very low-income families, including
       architectural and engineering design, planning, permitting, surveys, appraisals, and
       environmental review associated with an eligible project.

This update was made in response to feedback from ERA2 grantees and is intended to support
grantees’ efforts to increase the availability of affordable rental housing by using their ERA2
award funds. Grantees should be sure to review the language and definitions specified in FAQ
46 before obligating funds for the affordable rental housing purposes described in the FAQ ,
including the statutory requirement that the grantee must have previously obligated at least 75
percent of its total ERA2 award for financial assistance to eligible households, eligible costs for
housing stability services, and eligible administrative costs.

As with all ERA activities, grantees must comply with the ERA2 Financial Assistance
Agreement, including the requirements of the Uniform Guidance at 2 CFR Part 200, and other
applicable federal statutes and regulations. When grantees are using ERA2 award funds for
acquisition of real property for the purpose of constructing, rehabilitating, or preserving
affordable rental housing projects serving very low-income families, grantees must comply with
the requirements set forth in the Uniform Relocation Assistance and Real Property Acquisition
Policies Act (URA) at 42 U.S.C. 4601 et seq. and its implementing regulations at 49 CFR Part
24, including the standard for appraisals for real property being acquired with federal financial
assistance at 49 CFR § 24.2(a)(3). As required by the ERA2 award terms , grantees must
maintain all records and documentation related to their ERA2 award for five years after the
period of performance ends, including the documentation that establishes the time of acquisition
of the real property, the price of the real property, evidence of title and ownership, and proof that
the project for which the real property acquisition costs were incurred furthers an eligible
affordable rental housing purpose as described in FAQ 46. This may include, but is not limited

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to, purchase agreements, recorded deeds of trust or other conveyance documents, pre-purchase
appraisals that meet URA requirements, assurance of no displacement statement per the URA,
environmental reports, settlement statements, project plans/proposals, and signed award
agreements for other funding sources for the ERA2-funded affordable rental housing project.

In addition, grantees will be required to report to Treasury on the status of real property acquired
or improved, or both, with ERA2 award funds pursuant to 2 CFR 200.330.




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